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States Michigan Installment Loans

Installment Loans in Michigan

Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh

Michigan-licensed installment lenders can charge no more than 25% a year on the unpaid balance, plus a processing fee of up to 5% of the loan, capped at $500 in 2026 and 2027.

Check Your Options
Rate cap 25% a year on the unpaid balance, from licensed lenders
Processing fee 5% of the loan, up to $500 in 2026 and 2027 ($400 before)
Example $2,500 over 24 months: about $140.10 a month at the maximum
Paying early Any amount, any time during business hours
You need ID, proof of income and a bank account
Payments at the 25% Cap

LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.

What $1,000 to $10,000 Costs at 25% a Year

LoanPaymentsCost (APR)
$1,000, 12 mo12 × $99.80$198 (~35%)
$2,500, 24 mo24 × $140.10$862 (~30%)
$5,000, 36 mo36 × $208.74$2,515 (~29%)
$10,000, 60 mo60 × $308.19$8,491 (~27%)

Worked out from Michigan law, not offers from lenders in our network; a lender can charge less. Each example adds the processing fee to the loan, which Michigan allows, so the APR counts it.

The fee is 5% until the loan reaches $10,000. Above that, the $500 cap holds it flat for 2026 and 2027, up from $400 in 2024 and 2025. For $600 or less until payday, see Michigan payday loan rules.

Who Can Charge 25%, and Who Is Held to 7%

The 25% cap is the ceiling for lenders licensed under Michigan's Regulatory Loan Act or Consumer Financial Services Act. A lender without either license is limited to 7% a year with a written contract, or 5% without one.

  • A licensed lender can't have you take more than one unsecured loan with it at the same time.
  • In June 2026, DIFS said payday-style loans arranged through credit services organizations are prohibited under the Regulatory Loan Act.
  • Whoever the lender is, compare the APR on its offer with the table above.

Late, Returned and Early Payments

  • Late fees wait for the grace period. None before the grace period in your contract; after it, no more than $15 or 5% of the payment, whichever is greater.
  • Returned payments. A flat fee of no more than $25.
  • No charges in advance. Interest can't be deducted up front or compounded. It runs only on the unpaid balance, for the days that pass.
  • Early payoff saves interest. On the $2,500 example, paying the balance off after 12 of 24 payments skips about $207 in interest.

Requesting a Michigan Installment Loan

  1. Pick an amount and a term you can manage; the table above shows payments at the cap.
  2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
  3. Check that the processing fee is no more than 5% of the loan, and no more than $500.
Check Your Options

Find the Lender in the DIFS Regulatory Loan Locator

Official lookup tool DIFS Regulatory Loan locator
  1. On the Consumer Finance tab, choose RL - Regulatory Loan as the industry type, then search by company name, license number or NMLS ID.
  2. Not listed? Try the Consumer Financial Services locator; those licensees can make installment loans too.
  3. Match the licensee's name and address to your offer.

To complain, call DIFS at 877-999-6442 (Monday to Friday, 8 a.m. to 5 p.m.) or the CFPB at (855) 411-2372.

Common Questions

How do I qualify for an installment loan in Michigan?

Michigan law leaves credit standards to each lender, so requirements vary and approval isn't guaranteed. A LendUp request asks for ID, proof of income and a bank account.

How can I tell if a Michigan installment lender is legit?

Look it up in the DIFS Regulatory Loan or Consumer Financial Services locator before you sign. Without one of those licenses, a lender is limited to 7% a year with a written contract.

Can I get an installment loan if other lenders turned me down?

You can apply again, since each lender makes its own decision. If a Michigan-licensed lender approves you, it still can't charge more than 25% a year plus the processing fee.

What is the interest rate cap on installment loans in Michigan?

25% a year on the unpaid balance, for lenders licensed under the Regulatory Loan Act or the Consumer Financial Services Act.

How much is the processing fee?

Up to 5% of the loan, and no more than $500 in 2026 and 2027 ($400 in 2024 and 2025). It can be added to the loan.

Can I pay off a Michigan installment loan early?

Yes, in any amount at any time during business hours. Interest builds only on the unpaid balance, so an early payoff lowers what you pay.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

← Michigan loan rules